One key element is the introduction of a tax exemption for business-related restaurant representation expenses: companies will be exempt from the previously applicable public charge up to 1% of their annual revenue, capped at HUF 100 million per year. The amendment may encourage business-related restaurant spending and contribute to increased turnover in the hospitality industry.
The package also extends the preferential tax treatment of service charges. Restaurants may distribute up to 20% of their VAT-inclusive revenue derived from food and beverage consumption by guests – referred to in the legislation as the revenue forming the basis of the service charge – to employees as service charge. The regulation allows this even if the restaurant does not actually levy a service charge, provided it would otherwise be entitled to do so. Such payments are exempt from personal income tax and social contribution tax; only an 18.5% social security contribution is payable.
The measures further include the introduction of a new preferential loan facility of up to HUF 10 million through the Kisfaludy Tourism Credit Centre, half of which may become non-repayable subject to the fulfilment of specified conditions. The package also includes the issuance of a “Hospitality Handbook” providing professional guidance, as well as the digitalisation of the sector, with the phase-out of paper-based invoices effective from 1 January 2027.